EX-12.2 6 pseg-6302017xq2ex122.htm POWER EARNINGS TO FIXED CHARGES
EXHIBIT 12.2
PSEG POWER LLC
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

|  |  | Six Months Ended |  | Years Ended |
|  |  | June 30, |  | December 31, |
|  |  | 2017 |  | 2016 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012 |
|  |  | (Millions, except ratios) |
| Earnings as Defined in Regulation S-K (A): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Pre-tax Income (Loss) from Continuing Operations |  | $ | (445 | ) |  | $ | 299 |  |  | $ | (43 | ) |  | $ | 1,367 |  |  | $ | 1,251 |  |  | $ | 1,063 |  |  | $ | 1,099 |  |
| (Income) Loss from Equity Investees, net of Distributions |  | 1 |  |  | 3 |  |  | 7 |  |  | 1 |  |  | 3 |  |  | (10 | ) |  | (6 | ) |
| Fixed Charges |  | 67 |  |  | 69 |  |  | 142 |  |  | 152 |  |  | 150 |  |  | 143 |  |  | 164 |  |
| Capitalized Interest |  | 42 |  |  | (12 | ) |  | 11 |  |  | (1 | ) |  | 1 |  |  | 1 |  |  | (6 | ) |
| Total Earnings |  | $ | (335 | ) |  | $ | 359 |  |  | $ | 117 |  |  | $ | 1,519 |  |  | $ | 1,405 |  |  | $ | 1,197 |  |  | $ | 1,251 |  |
| Fixed Charges as Defined in Regulation S-K (B) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest Expense |  | $ | 64 |  |  | $ | 67 |  |  | $ | 138 |  |  | $ | 148 |  |  | $ | 146 |  |  | $ | 139 |  |  | $ | 161 |  |
| Interest Factor in Rentals |  | 3 |  |  | 2 |  |  | 4 |  |  | 4 |  |  | 4 |  |  | 4 |  |  | 3 |  |
| Total Fixed Charges |  | $ | 67 |  |  | $ | 69 |  |  | $ | 142 |  |  | $ | 152 |  |  | $ | 150 |  |  | $ | 143 |  |  | $ | 164 |  |
| Ratio of Earnings to Fixed Charges (C) |  | (5.00 | ) |  | 5.20 |  |  | 0.82 |  |  | 9.99 |  |  | 9.37 |  |  | 8.37 |  |  | 7.63 |  |

(A) | The term “earnings” shall be defined as pre-tax Income from Continuing Operations before income or loss from equity method investees plus distributed income from equity investees. Add to pre-tax income the amount of fixed charges adjusted to exclude the amount of any interest capitalized during the period.

(B) | Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, and (c) an estimate of interest implicit in rentals.

(C) | The ratio of earnings to fixed charges for the six months ended June 30, 2017, was (5.00), as noted above, which represents a deficiency of $402 million. The ratio of earnings to fixed charges for the year ended December 31, 2016, was 0.82, as noted above, which represents a deficiency of $25 million.